CSEA AFRICA – CENTRE FOR THE STUDY OF THE ECONOMIES OF AFRICAhttp://cseaafrica.org
Non-proﬁt think tank that conducts independent research2018-08-14T15:57:22Zhourly12000-01-01T12:00+00:00

Nigeria Economic Update (Issue 29)http://cseaafrica.org/nigeria-economic-update-issue-29-3/
2018-08-14T15:57:22ZThe IMF retained its 2.1 percent forecast of Nigeria’s GDP growth rate for 2018, while increasing the 2019 projected GDP growth rate to 2.3 percent1, from 1.9 percent projected earlier. The stated review is at the backdrop of continued increases in commodity prices in the long term, for which crude oil is the benchmark for […]]]>

The IMF retained its 2.1 percent forecast of Nigeria’s GDP growth rate for 2018, while increasing the 2019 projected GDP growth rate to 2.3 percent1, from 1.9 percent projected earlier. The stated review is at the backdrop of continued increases in commodity prices in the long term, for which crude oil is the benchmark for Nigeria. Outlook on crude oil price and production is expected to maintain upward improvements in the near term. However, the Nigerian government pegs its own forecasted growth rate at 3.5 percent in 2018 – higher than figures predicted by the IMF, although premised around the same driving factors. In order to achieve a 3.5 percent GDP growth rate, a more effective implementation of the bold initiatives in this administration’s economic plan – the Economic Recovery and Growth Plan – is critical particularly in the agriculture and manufacturing sectors.

]]>The Economics of Tobacco Control in Nigeria: Modelling the Fiscal and Health Effects of a Tobacco Excise Tax Change in Nigeriahttp://cseaafrica.org/the-economics-of-tobacco-control-in-nigeria-modelling-the-fiscal-and-health-effects-of-a-tobacco-excise-tax-change-in-nigeria/
2018-08-10T14:22:44Z]]>]]>Structure of Nigeria’s Debthttp://cseaafrica.org/structure-of-nigerias-debt/
2018-08-09T10:11:40Z]]>]]>Improving Youth Employability in Nigeria: Making a Case for Inclusive Skill Developmenthttp://cseaafrica.org/improving-youth-employability-in-nigeria-making-a-case-for-inclusive-skill-development/
2018-08-06T09:46:53ZIn September 2015, World Leaders at the United Nations Special summit adopted what has been described as “the most inclusive development agenda the world has ever seen” – the 2030 agenda for sustainable development. The 17 ambitious goals provide the impetus for countries and communities to tackle confronting challenges, including those in the world of […]]]>

In September 2015, World Leaders at the United Nations Special summit adopted what has been described as “the most inclusive development agenda the world has ever seen” – the 2030 agenda for sustainable development. The 17 ambitious goals provide the impetus for countries and communities to tackle confronting challenges, including those in the world of work – highlighted in goal 8 (full and productive employment and decent work for all). Goal 8 is of critical importance for Nigeria given that while education serves partly as a means to getting a decent job, especially for young people, inclusive skill development and training are indispensable in order to keep up with the changing employment needs at the labour market.

The youth are important to economic growth and development because they have the potentials to be innovative, willing to take risks, and the ability to learn and adapt in a changing world. In low and lower-middle income countries like Nigeria, the role of youths in economic productivity and sustainable development cannot be overemphasized. Nigeria, with its increasing population, more than half of which are young people under the age of 24 and a fifth of which are youths (15-24), have a potential to benefit from demographic dividends. This implies that a growing number of young people potentially in the workforce could trigger a boost in economic productivity.

However, the labour market in Nigeria is characterized by a significant mismatch between skills demanded by employers and those possessed by these young prospective workers, which has led to an increase in youth unemployment rates. Graduates of tertiary institutions remain unemployed for up to five years after graduation, partly because they lack market-relevant skills, and also because job creation has not kept up with the increase in the young adult population. Typical of most developing nations, Nigeria has experienced significant increases in youth unemployment rates over the past decade, with an average rate of 21.73 percent between 2014 and 2017. Furthermore, the National Bureau of Statistics (NBS) places the number of unemployed youths at 6 million or 33.1 percent of total unemployed Nigerians in 2017—almost double the number in 2012 and representing the largest unemployed age group in Nigeria. The unemployed population in Nigeria is further increased with the number of underemployed youths, even larger when adding the number of underemployed youths.

The problem of high unemployment and low employability for young people results from deficiencies in the supply and demand sides. Contributory factors include dysfunctional educational system reflected in a failure to pass-on market relevant knowledge and skills to prospective young job-seekers, and poor teacher training among others. Moreover, young Nigerians who manage to possess few marketable skills are also confronted with the lack of vibrant industries to absorb them, a situation aggravated by flawed and inconsistent economic policies. In this article, solutions are suggested to bridge the current skill gaps in Nigeria— this is important to meet the SDG 8 and offers significant economic payoffs for Nigeria.

WAY FORWARD: SUPPLY SIDE

The Nigerian education system and curricula need significant reforms. Incorporating and re-integrating work-based learning models into the curriculum, as well as having career professionals as role models in the classroom present crucial steps towards improving youth employability. These could be complemented by programs and courses with practical market values similar to vocational schools in other economies. Replicating Germany’s dual education system, where young people have access to a combination of vocational education and work-practice education, could function as affordable and realistic path to meaningful employment.

Youths should see mentorship as a crucial support strategy for a successful career. Voluntarily seeking out mentors – those who are further ahead of their careers and have been fortunate to obtain good jobs and successful careers – allows for the development of non-cognitive skills necessary for successful employment. Mentors can enhance youth employability in two key ways: enhancing career readiness skills and providing guidance for professional challenges. More importantly, youths can stay engaged academically while preparing for a career path.

In order to gain work experience prerequisite for employment, the youth in Nigeria can also volunteer at jobs while in school. As an equal experience provider, volunteering in one’s field of interest, even if unpaid, prepares the young adult to join the labour market even before graduating from school by developing hands-on experience and networks within the industry. The aim is to have the record in their resumes as relevant work experience, and also to gain a deeper understanding of the skills required in the workplace.

WAY FORWARD: DEMAND SIDE

Investment in apprenticeship and work-readiness programs in collaboration with well-certified and credible training partners will provide new entry points for young people, tailor their talent to match the needs of firms and clear the hurdle of having no job experience. Rejuvenating the Nigerian GIS (Graduate Internship Scheme) is a step in the right direction, but the focus should be on sustaining these efforts over the long term. For instance, the National Directorate of Employment (NDE) can draw learning outcomes from the GAN (Global Apprenticeships Network) initiative in Switzerland- a program used to advocate and commit to actions around skills development and youth employability, through a coalition of stakeholders. Further, these collaborations could replace unpaid work-readiness programs, and provide soft loans for young people interested in entrepreneurship. While such programs are a foundation for career development, unpaid placements can leave young people embittered towards the concept of work.

Labour unions can effectively intervene through well-intentioned youth employment protection labour laws. In Nigeria, three out of four young people employed informally do not have access to employment-related protections, health insurance and other benefits. Without protective laws, active young job-seekers may not be enthusiastic about joining the labour market for fear of physical risks and uncertainty.

CONCLUSION

For many young Nigerians, entrance into the workforce is becoming far more challenging than expected. The growing misalignment between the demand and supply for skills means that both employers (demand side) and prospective young employees (supply side) must be willing to play their roles simultaneously to curb the dearth of youth employability in Nigeria.

]]>Nigeria Economic Update (Issue 28)http://cseaafrica.org/nigeria-economic-update-issue-28-3/
2018-08-02T18:59:47ZInformation from the Apex bank shows a likelihood of not attaining the financial inclusion target of 2020 as stated in the Nigeria Financial Inclusion Strategy (NFIS) of 2012. Precisely, the CBN’s 2016 financial inclusion report states that only 58.4 percent of Nigerian adults were financially included as against the overall financial inclusion rate targeted at […]]]>

Information from the Apex bank shows a likelihood of not attaining the financial inclusion target of 2020 as stated in the Nigeria Financial Inclusion Strategy (NFIS) of 2012. Precisely, the CBN’s 2016 financial inclusion report states that only 58.4 percent of Nigerian adults were financially included as against the overall financial inclusion rate targeted at 80 percent. Similarly, only about 48.6 percent use formal financial services compared to the targeted 70 percent1. Related to the targets are 22 key performance indicators that Nigeria still lags behind in. Leveraging on technology to boost financial inclusion would be a significant step forward

]]>Nigeria Economic Update (Issue 27)http://cseaafrica.org/nigeria-economic-update-issue-27-3/
2018-08-02T18:51:31ZAnalysis of transactions at the stock market for the month ended May 2018 reveals an increase in the total transaction by a significant 50 percent. From N212.2 billion recorded in April to N318.3 billion in May 20181. Foreign transactions also increased by 57 percent to N193 billion and accounted for 61 percent of total transactions […]]]>

Analysis of transactions at the stock market for the month ended May 2018 reveals an increase in the total transaction by a significant 50 percent. From N212.2 billion recorded in April to N318.3 billion in May 20181. Foreign transactions also increased by 57 percent to N193 billion and accounted for 61 percent of total transactions at the bourse. Similarly, domestic investment increased by 40 percent to N125 billion with a 49 percent share of total transactions. With a growing foreign investors’ participation, foreign portfolio investment outperformed domestic investment by 21.3 percent, and for the second consecutive month

]]>BRICS and Africa: Navigating Global Economic Turbulence Togetherhttp://cseaafrica.org/brics-and-africa-navigating-global-economic-turbulence-together/
2018-08-02T15:16:00ZAhead of the 2018 BRICS Summit, The South African Institute of International Affairs with National Treasury, the Global Economic Governance Programme and the Konrad Adenauer Foundation hosted a high-level conference BRICS and Africa: Navigating Global Economic Turbulence Together. The event featured two high-level panel of discussions. The keynote panel reflected on the implications for African and developing countries of […]]]>

Ahead of the 2018 BRICS Summit, The South African Institute of International Affairs with National Treasury, the Global Economic Governance Programme and the Konrad Adenauer Foundation hosted a high-level conference BRICS and Africa: Navigating Global Economic Turbulence Together.

The event featured two high-level panel of discussions. The keynote panel reflected on the implications for African and developing countries of the changing global geo-economic context. The second panel session brought together different stakeholders from Africa to examine the achievements and challenges of the bloc specifically focusing on the BRICS’s engagement in global economic governance forums. It also addressed the question of whether the BRICS have a coherent engagement strategy with Africa and whether there is room for the BRICS to engage more closely with each other within the BRICS grouping on their bilateral African engagement strategies.

CSEA’s Executive Director, Dr. Chukwuka Onyekwena participated in the panel session on “Taking stock of the BRICS’ economic and financial cooperation and implications for Africa’s development priorities: Achievements and looking forward”.

The conference concluded with a panel discussion that considered perspectives from different BRICS countries on how to navigate the current wave of global turbulence, looking at what is next for the BRICS in its second decade. The event held on July 24, 2018 in Sandton, South Africa.

Figures from the Debt Management Office show a remarkably high percentage change in debt servicing for the first quarter, 2018. Specifically, the Federal Government paid N643 billion for domestic debt servicing1, a quarter-over-quarter and year-on-year increases of 50 percent (from N429.8 billion) and (from N424 billion) respectively. Increasing debt burdens and debt servicing seem to be exacerbated by the high cost of domestic debt, necessitated by huge domestic borrowings to fund budgets and reflate the economy

]]>Nigeria Economic Update (Issue 25)http://cseaafrica.org/nigeria-economic-update-issue-25-3/
2018-07-30T08:12:57ZThe recent report on Nigeria’s Public Debt Stock for the first quarter of 2018 indicates a 4.5 percent Quarter-over-Quarter increase, from N21.7 trillion in Q4 2017 to N22.7 trillion1, and a Year-on-Year increase of 18.5 percent from N19.2 trillion2. The ratio of domestic debt to external debt is put at 70:30, a reduction in domestic […]]]>

The recent report on Nigeria’s Public Debt Stock for the first quarter of 2018 indicates a 4.5 percent Quarter-over-Quarter increase, from N21.7 trillion in Q4 2017 to N22.7 trillion1, and a Year-on-Year increase of 18.5 percent from N19.2 trillion2. The ratio of domestic debt to external debt is put at 70:30, a reduction in domestic debt from the previous share of 73 percent, and an increase of external debt share from 27 percent – a reflection of the need for caution in external borrowings

]]>CSEA participates in the Southern Voice Peer Review Workshop for State of the SDG’shttp://cseaafrica.org/csea-participates-in-the-southern-voice-peer-review-workshop-for-state-of-the-sdgs-2/
2018-07-27T09:09:10ZCSEA’s Senior Research Fellow, Dr. Adedeji Adeniran and Research Associate, Joseph Ishaku participated in the Peer Review Workshop for the “State of the SDGs” report organized by the Southern Voice in Negombo, Sri Lanka on July 18-20, 2018. The meeting featured six research teams– Ghana, Nigeria, Bolivia, Peru, India and Sri Lanka- the launch of […]]]>

CSEA’s Senior Research Fellow, Dr. Adedeji Adeniran and Research Associate, Joseph Ishaku participated in the Peer Review Workshop for the “State of the SDGs” report organized by the Southern Voice in Negombo, Sri Lanka on July 18-20, 2018.
The meeting featured six research teams– Ghana, Nigeria, Bolivia, Peru, India and Sri Lanka- the launch of their country studies to feed into the upcoming ‘Southern Voice State of the Sustainable Development Goals’ Report. The research will focus on three Sustainable Development Goals (SDG 4 ‘quality education’, SDG 7 ‘affordable and clean energy’ and SDG 8 ‘decent work and economic growth’) in the Global South.
The Southern Voice “State of the SDGs” initiative will provide evidence-based analysis and recommendations to improve the delivery of the Sustainable Development Goals (SDGs). As a collaborative initiative, the programme will compile a broad range of perspectives that are usually missing from international debates. CSEA’s research will focus on “Educational Performance in Nigeria: The Dimensions, Drivers, and Implication for SDGs”(SDG 4).
The Southern Voice is a network of 50 thinks tanks from across Africa, Asia, and Latin America. It serves as a platform for the Global South to promote evidence-based dialogue on the Sustainable Development Goals (SDGs) and its impact on the South